Next Generation Manufacturing

Who's Buying All This Stuff?

I was online window-shopping recently, and was numbed by the number of products available — every kind of product in every category imaginable: Many products were familiar to me as were the brand names and companies behind these goods. Most products came in an assortment of colors, sizes, and configurations. There were many other products whose utility, intent, or manufacturer I wasn’t quite sure of. Many of these, too, came in various colors, sizes, and configurations.

Now I’m not a big shopper. I probably need to get into stores more or online more and look at what’s available. Nonetheless, I was still struck by how much stuff there is to buy. Every time I see a new big box store being constructed (minutes within two or three or five other big box stores), I think the same thing.

According to the U.S. Patent and Trademark Office (USPTO), in 2010 there were 244,341 total patent grants — an increase of 39% from 2000 and an increase of 147% since 1990. And that occurred despite the USPTO being a little stingier in granting patents, as applications over those same periods rose by 65% and 195%, respectively. So more product ideas are entering new-product pipelines and eventually getting produced and shipped to stores.

But, still, who’s buying all this stuff? There aren’t dramatically more people in the United Sates; population rose by about 10% and 24%, respectively, during those periods. And household incomes have been relatively flat. And prices have been rising – since 1955 the consumer price index has fallen only once (in 2009). Consumers have less money to spend today for more products.

That leaves me feeling guilty. I clearly have not been doing my part as a consumer, leaving the spending burden to others. So what stuff should I buy?

by George Taninecz, VP of Research, The MPI Group

 

Stat of the Week: Getting Everyone Involved in Process Improvement

Ideally, everyone in a company is engaged in a company’s improvement method or approach, from shop-floor operators to office staff to sales representatives. But in reality, that’s rarely the case, according to the Next Generation Manufacturing Study.

Only 10% of manufacturers have 100% of their workforces engaged in their improvement approaches; 44% of manufacturers have a majority of the workforces engaged.

Two-thirds of manufacturers at or near world-class status for their strategy of superior processes and improvement (65%) have a majority of their workforces engaged in their improvement approaches vs. 28% of manufacturers furthest from world-class status. Two-thirds of manufacturers (65%) invest 5% or less of sales in capital equipment (three-year average). Half of manufacturers at or near world-class status (50%) invest more than 5% in capital equipment vs. 25% of manufacturers furthest from world-class status.

What's Your Leadership Mind-set?

Do you have a "growth mind-set?" Or a "fixed mind-set?" Here are three questions to ask ourselves that will help grasp the difference from BusinessWeek.com

Of Interest to Manufacturers

There have been a lot of manufacturing methodolgies introduced in the past 20 years and it is time to bring the same improvement process to the sales-and-marketing arena. Here are some tools for applying lean to sales and marketing from a leanjourney.com

According to The Hackett Group's 2011 Key Issues Study, future opportunities for manufacturers are predicted to come from some unexpected and often uncharted quarters according. Read more at businessfinancemag.com

The current once-yearly model of commercial sustainable development reporting will be replaced by myriad forms of reporting, according to research by Acona and SABMiller who conclude that current sustainability reporting methods are "outdated." Read it at environmentalleader.com

Putting your digital possessions in the cloud isn't tough. There are many sensible ways to do it, each with its own particular upsides, plus a downside or two. Herewith, a quick guide to four of them from Time.com

SAP's Supply & Demand Comic Strip

SAP’s supply chain found a creative way to leverage social networks in bringing awareness of supply-chain issues and best practices. It developed a comic strip –– Supply & Demand –– that follows the trials and travails of a company with a best-selling product but less- than-stellar supply-chain management.

Engaging, easy to read and readily available for forwarding via email or social utilities such as Facebook, comic strips offer a unique, cost-effective opportunity to quickly engage prospects and clients — with surprising results.

MPI created the comic strip series for SAP, who then took it a step further and created their own digital comic eBook.

Download the SAP Supply & Demand eBook.